5. A more accurate delimitation of the boundaries of the district leased will take place in accordance with the local conditions, and will be carried out by Commissioners from both Governments." The Foreign Secretary added the following particulars respecting the area, &c., of the territory and the character of the lease: "The territory leased, the boundaries of which are not yet accurately determined, will cover an area of 30 to 50 square kilometers. Consequently, it is materially larger than the British possession at and opposite Hong Kong. For military reasons, the northern boundary had been pushed a little further forward than is shown on the map presented to the Budget Commission. The number of inhabitants is calculated at a few thousand. As regards the size of the bay, accurate details are as yet wanting. It runs about 20 geographical miles into the mainland. At its narrowest point, the entrance to the bay is about 3,000 metres broad. Two-thirds of the bay afford harbour accommodation. The rent payable to China, the exact amount of which has not yet been determined, is an unimportant point, as it possesses a nominal character merely representing the continuation in theory of the proprietorship of China over the territory ceded. The following stipulations have been secured respecting railway and mining concessions:—The Chinese Government have consented to hand over to a German-Chinese Railway Company, to be formed hereafter, the construction of a railway from Kiao-chau, which will run first in a northerly and then in a westerly direction, to be subsequently connected with the projected great railway system of China. The railway will serve the coalfields of Weih-sien and Poshan, situated to the north of Kiao-chau, which will be exploited by German capital. The Chinese Government have further pledged themselves to accord to the Railway Company to be thus formed, conditions at least as favourable as those granted to any other European Chinese Railway Company in China."